The rental market in the Valencian Community shows notable differences between its capitals. While Castellón de la Plana positions itself as one of the most profitable cities for property investment and rental, Valencia stands out for having rooms with prices among the highest in the country. This data, compiled by pisos.com, confirms the growing appeal of room rentals for small investors.
Nationally, the average profitability for renting a whole apartment (90 sqm) stands at 7.23%, a figure that rises to 7.77% if rented by rooms. This model allows owners to generate income from multiple tenants and mitigate the impact of an empty room, although it involves more turnover and management.
Within the Valencian Community, Castellón de la Plana leads the returns. Renting a whole apartment offers 7.17%, placing it among the top ten most profitable Spanish capitals. Profitability improves to 8.02% in shared rentals, re-entering the national top.
In contrast, Valencia presents a profitability of 6.40% for whole apartments and 7.77% for shared rentals, aligning with the national average. However, the Valencian capital is one of the most expensive cities for renting a room, with an average price of 616.74 euros per month, surpassed only by Barcelona, Madrid, and Palma de Mallorca.
Alicante shows more moderate returns: 5.60% in traditional rentals and 5.85% in room rentals. Although the price of a room (382.74 euros/month) is lower than in Valencia, the relationship between purchase cost and rental income places it below Castellón and Valencia in profitability.
The initial investment explains part of these differences. A 90 sqm apartment costs 141,378 euros in Castellón, 285,634 euros in Valencia, and 235,476 euros in Alicante. The estimated annual income from shared rentals is 11,333 euros in Castellón, 22,202 euros in Valencia, and 13,778 euros in Alicante. Valencia generates more gross income, but the higher initial investment reduces its percentage return compared to Castellón.
“"Room rentals allow the owner to spread the risk, as if one room remains empty, the others continue to generate income. Nevertheless, profitability on paper is not everything, because a shared apartment requires more dedication, more maintenance, and more intensive management than traditional renting."
In summary, the Valencian rental map presents three scenarios: Castellón as the most attractive capital for profitability, Valencia with high room prices, and Alicante in a more moderate position. For the small investor, the key lies in the relationship between purchase cost, monthly income, and management effort.
